The American Imperium

0:00Subject today is the American Imperium, the all-powerful government we now have in America. I'll tell you about my ideas on how I think it came about, the person primarily responsible, and then how it is actually working today. Many writers and intellectuals, politicians who have tried to pinpoint the turning point of America away from the founding fathers and our early republic point to the New Deal as a peacetime episode in American history. The book I spoke to you about last year and that Lou just mentioned, The Cost of War, America's Period Victories, however identifies the turning point as three successful wars fought by the American government, and Government, the American Civil War, the Spanish American War, and America's entry into World War I. That cleared out the republic and the restraints on government and then cleared the way for the creation of the new structure, which was the American Imperium.

1:05The premise today is that those three wars cleared the way for the one man who really took charge and created the American Imperium and that was Franklin Delano Roosevelt. He built this American Imperium through the unprecedented four terms and office. He started out with the New Deal, the peacetime episode, but that New Deal, I believe, could not have been created without the clearing out of the American Republic earlier and the release of their strengths and it created the momentum and the structure that was simply were revitalized by Roosevelt in creating the Imperium. I believe the New Deal would have gradually diminished also without World War II putting it into cement and establishing once and for all huge government bureaucracies in the all-power government we have today.

2:01Two prominent politicians during our times, President Reagan and Speaker of House Newt Gingrich, have both stated that their political hero was Franklin Roosevelt. The statements are essentially contradictory to say that they believe in a limited constitutional government and have Franklin Roosevelt as their political hero. It leads you to believe you have a mystery there as to what their true beliefs are, or they don't understand what Roosevelt did or stood for. Another recent and excellent book, which I believe supports my conclusions, is by Bruce Bruce Porter entitled War and the Rise of the State. This is a study of the past 500 years and the wars fought during those years for western civilization and what effect they have had in regard to the fall and rise of states and the increase of power during those periods of time. In his chapter on the American government, he states that the New Deal was was the only time in U.S. history when the power of the central state grew substantially

3:07in the absence of war. He goes on to conclude that America's successful wars have been the primary means by which government power has been centralized into the federal government. He states this, quote, Throughout the history of the United States, war has been the primary impetus behind the growth and the development of the central state. It has been the lever by which presidents and other national officials have bolstered the power of the state in the face of tenacious popular resistance. It has been the wellspring of American nationalism and a spur to political and social change. Franklin Roosevelt, who I will refer to from this point on as FDR, is constantly ranked as one of our greatest presidents and usually He is pictured in American mythology as a man who hated war and loved peace, and promised the mothers and fathers of American boys that they would never be sent to a foreign war unless attacked first. He used this slogan for peace to be re-elected to the unprecedented third

4:16term in 1940. He copied Wilson's he kept us out of war slogan as a peacekeeper, and this Scott Wilson re-elected to a second term and then Wilson immediately after his election asked for a declaration of war in World War I. I want to investigate this mythology of FDR and I will use the Congressional investigation of Pearl Harbor primarily which took place in 1945 and 1946 as my evidence to show how How the American Imperium was Created and Why the Myth of FDR is False. Understanding the truth about Pearl Harbor is a real key to understanding the American Imperium and how it works in practice, both then and now.

5:03But history is like a seamless piece of cloth. If you want to investigate one period, you have to see what preceded it, both in events and ideas. So I'm going to go back to an earlier period and build up to what happened at Pearl Harbor. And I think first and foremost it's important to recall the farewell address of Washington and the strong warning that he gave about the bad influence of having foreign powers influence your domestic and foreign policies and the threat to freedom that that constituted. He stated this, quote, Against the insidious wiles of foreign influence, I conjure you to believe me, fellow citizens, the jealousy of a free people ought to be constantly awake since history and experience prove that foreign influence is the one most painful foes of Republican government, end quote.

6:01Secondly, let's look at Winston Churchill's role in help bring about America's entry into World War I because he is a most important person in bringing us into World War II. In World War I, while England was at war with Germany, Churchill served as the first Lord of the Admiralty and he was a decisive factor in what happened to the Lusitanian. England had always played a balance of power politics for hundreds of years and always had opposed any nation on the continent that appeared to be challenging the economic superiority of the British Empire. And so Germany, ever since the turn of the century, had constituted this economic threat. And this led England want to curb the power of Germany. When England When war was at war with Germany, in World War I, the Admiralty then took over the Canard ship line because what had happened was that the British government had financed the building of the Lusitania and other ships and also created the design of those ships so they

7:11could carry munitions and arms secretly. They could control the personnel on those ships. The author Colin Simpson, in his explosive bestseller published in 1972 entitled The Lusitania, gives the details on how Churchill used the sinking of the Lusitania to bring America into World War I. Because when the Lusitania sank, there were over 100 American citizens on board that lost their lives. First of all, the Admiralty Department changed the captain of the ship to the Captain William Captain Turner for this unusual voyage. Then as the Lusitania drew near its final destination, orders came from the Admiralty Department that the usual military escort that was supposed to meet it, called the Juno, was to abandon its escort and left the Lusitania alone. Then orders were issued to Captain Turner to slow the speed of the fastest ship in the world so that it became an easy target for a submarine and also Captain Turner was not told what the Admiralty Department knew and that was that a German sub laid directly in its path.

8:23At the hearing in England following this disaster, Captain Turner was made the scapegoat and found guilty of neglect of duty just as the American commanders would be at Pearl Harbor and the whole disaster was blamed on these military commanders. So there was very much a parallel. Thirdly, prior to Pearl Harbor, another very important matter involving Churchill relates to his close friend, William Stephenson, who later became known by his famous code name, Intrepid. Stephenson was a Canadian who made millions during World War I as part of the military-industrial complex of England, and he became a very close friend and confidant of Winston Churchill.

9:12When Churchill became Prime Minister in May of 1940, a year and a half before Pearl Harbor, he secretly arranged for financing from the royal family to create an operation and an office in New York City at Rockefeller Center to be headed up by William Stevenson or Intrepid. The primary purpose of this organization was to help Roosevelt and Churchill bring America into the war through propaganda and whatever other means were necessary. This organization also had Roosevelt's blessing to eliminate any enemies of Great Britain in America, even if they were American citizens. This entire story is told in great detail by Intrepid himself in a book published in 1976 by a man called Intrepid. The author is William Stevenson, but he spells his name differently than William Stevenson Intrepid. This is history from the original source. This is interviews with Intrepid himself with his explanation of all the documents that are involved. Intrepid has also been made famous through the fiction of one of about his agents. One of his agents was a man by the name of Ion Fleming. Ion Fleming

10:29wrote a series of books about James Bond and those have been made into some of the more famous movies of our time. If you're familiar with those books and movies, Intrepid is represented by the character Elm, who is the mysterious boss of James Bond. Now FDR had direct communication with Intrepid through his close associate, Bill Donovan, and through his son, James Roosevelt. Those are the people that brought messages back and forth to Roosevelt between he and Intrepid. Donovan, of course, became the founder of the CIA, and this was patterned completely on a design put forward by Intrepid of how to create a secret government agency. J. Edgar Hoover was a very reluctant participant in this whole scheme, but a very important ploy. The whole plan required that Hoover and the FBI become subservient to the demands and needs of Intrepid. One dramatic incident recalled by Intrepid in this book is the mysterious death of an American citizen by the name of William Rhodes Davis, who was a wealthy oil

11:40from Oklahoma, and his main business office was also in Rockefeller Center where Intrepid was located. During the 1930s, Davis had developed strong business ties with the German government and he was an important source of oil for that government. In the summer of 1941, Davis, age 52 and in excellent health, suddenly died. The FBI stepped in and stopped all local investigation and His Death and it was officially labeled as sudden heart seizure. Propaganda was also a prime activity. Intracted created false documents and a false map was created and this false document and map was actually used by FDR in a speech to the American people on October 27, 1941.

12:31The document was allegedly captured from a German spy and purported to show Hitler's plans for an invasion of America through South America, showing imminent danger to America from the threat of Germany. Intrepid also created a false document that was put into Hitler's hands as an allegedly stolen document of the American government. It was received by Hitler on December 3, 1941, and purported to show FDR's secret plan to make a preemptive surprise attack on Germany. This document played a major role in Hitler's decision to go ahead and declare war on America on December 11, 1941, which surprised and remains a mystery to most people, except to FDR. He knew exactly what it was about, as did Intrepid, Intrepid also provided the ammunition to attack FDR's political enemies such as Charles Lindbergh, and false information was created to make it appear that Lindbergh was a Nazi sympathizer.

13:41Intrepid's role was pervasive in America's entry into the war, and I strongly recommend to you that you read the book, A Man Called Intrepid. Alright, now let's move up into Pearl Harbor, which led to a direct attack on the Pacific fleet and killed 3,000 American servicemen and did massive damage to the Pacific fleet. First, there was a naval maneuver in 1932 and it was documented at that time by the naval planners that if there was ever a war between Japan, that the Japanese would strike like the Pacific Fleet wherever it was located. Pearl Harbor was shown to be extremely vulnerable to a surprise attack by aircraft carriers. The reports show that in order to prevent a surprise attack, that a large contingent of aircraft would be needed to provide a 360 degree surveillance for a long distance all around Hawaii in order to prevent a surprise Secondly, FDR ordered that the Pacific Fleet be transferred from its base at San Diego to Pearl Harbor with virtually no air cover support. Admiral James O. Richardson, commander

15:01of the Pacific Fleet, was so violently opposed to this ridiculous order that he made a personal visit to the White House and protested precipitously to Roosevelt about this order, whereupon Roosevelt removed him as the commander of the Pacific Fleet and substituted the unfortunate Admiral Kimmel. Next, FDR began to deplete the Pacific Fleet and transfer many of its vessels to the Atlantic in order to aid the British and to try to provoke the Germans into making the first shot. Here's some more of FDR's provocative acts. In the Atlantic, he used American military personnel and equipment to help locate the German battleship the Bismarck in order for the British to sink it, and he told Harry Hopkins at the time that if this was ever discovered by the American people, he would be impeached, but he went on to much greater things after that.

15:57In the Atlantic, he also used other various ships by the names of the Grier, the Kearney and the Reuben James. All of those ships were used as escorts for British ships and to help locate the submarines so that British aircraft could destroy them. And in two of those cases, German subs eventually did fire torpedoes at those boats, but missed them. Roosevelt attempted to stir up this as the shot that caused the war, but Congress would not take the bait and refused to go along with it. Roosevelt also used three ships in the Philippines, stamped on each ship by only one American naval man, but the remainder of the crew of the Philippines, who always, the Philippines seemed to always catch the brunt of American foreign policy. Those ships were sent out in order to try to draw an attack, but the Japanese would not take the bait.

16:54Look at the diplomatic moves of Roosevelt. First of all, he attempted to provoke the Next in August 1941, he met with Churchill at the Atlantic Charter and they discussed secretly what was to be done. Churchill later revealed to his war cabinet that Roosevelt promised him at that time that he would in some way get America into the war even though Churchill later bragged to the House of Commons about his policy of getting America into the war, and as part of this statement, he said to the House of Commons, This is what I dreamed of, this is what I aimed at, and now it has come to pass.

17:55One member of Churchill's war cabinet was Captain Oliver Lightington, the British production minister, who knew all of Churchill's and Roosevelt's secret meetings and negotiations prior to the war. He made a speech in London on June 20, 1944, to the American Chamber of Commerce, and he stated this, America provoked Japan to such an extent that the Japanese were forced to attack Pearl Harbor. It is a travesty on history, even to say that America was forced into the war." In FDR's cabinet, there was Secretary of War Henry Stimson, who wrote in his diary on November 25, 1941, 13 days before Pearl Harbor, he described a cabinet meeting which occurred at the White House His diary notes that the meeting occurred at the White House and he states this, quote, There the President brought up entirely the relations with the Japanese.

18:58He brought up the event that we were likely to be attacked, perhaps as soon as next Monday. But the Japanese are notorious for making an attack without warning, and the question was, what should we do? The question was, how should we maneuver them into the position of firing the first shot without allowing too much danger to ourselves? In an unprecedented diplomatic move on the part of the Japanese, the Prime Minister, who was a member of the royal family of the Emperor's son, offered to come to America and meet with Roosevelt immediately after Roosevelt had met with Churchill. The royal family had never left Japan on a diplomatic move before and this was completely unprecedented.

19:47Roosevelt absolutely rejected the offer and refused any such meeting. Now, let's look at how the American imperial treated its own armed forces and the commanders in the Pacific. I'm going to relate to you now a number of matters that were known to FDR and to his top military advisor, George Marshall. All of this was known prior to Pearl Harbor and none of this was conveyed to General Short or Admiral Kimmel, the commanders in Pearl Harbor, who were later blamed for the tragedy. First, on January 27, 1941, the American ambassador to Japan, Joseph Grew, telegraphed FDR that he had learned from a colleague from Peru that reliable sources have intercepted Japanese military plans to the effect that if Japan was forced into a war with the U.S., they would launch a massive surprise attack on Pearl Harbor. Secondly, the Americans had broken the Japanese diplomatic code and they were reading the actual words of everything that was going on between Japan and its representatives The Japanese spies in Hawaii were regularly reporting the positions of the ships in Pearl Harbor, and this information was drastically increased the week before the attack, even including information as to the ships that were not being moved.

21:25A grid system was designed so that they could place ships in certain grid numbers and they would report when those ships were moved or not moved, which obviously showed that an air attack was imminent. Next, Roosevelt and Marshall both learned that the Japanese diplomats had stated that by November 26, 1941, if the matter could not be resolved diplomatically, then things would automatically happen. On December 3, 1941, Captain Lawrence Safford intercepted what's called the Wind's Execute Message, and it translated to mean this, quote, war with America, war with England, peace with Russia. Written evidence of this message was mysteriously removed from the naval records before the Pearl Harbor investigation and was never found.

22:18On December 6, 1941, a message was delivered by Naval Commander Lester Schultz directly to FDR and Harry Hopkins at the White House. It was said that the Japanese diplomatic code machines were to be destroyed and that a major event would occur the next day. FDR turned to Harry Hopkins and stated, this means war. There's an apocryphal story about Nero fiddling while Rome Byrne. But this is a true story in regard to Roosevelt because he stated when asked what did you do on Saturday night, December 6th, he stated I worked on my stamp collection. When he knew that an attack was going to occur probably at Pearl Harbor and possibly in the Philippines, of course it occurred at both places, but he took no action whatsoever.

23:12During the early morning hours of December 7, the code word came that at 1 o'clock Washington time Sunday afternoon, that the Japanese diplomats would meet with Cordell Hull, Secretary of State, for an important message. 1 o'clock in Washington was dawn at Pearl Harbor. General George Marshall, the Chief Military Officer, had all the information I've just told you, was this information on his desk two hours before Pearl Harbor attack and he had on his desk what's called a scrambler phone and you can talk into this, it scrambles the message and then unscrambles it at the other end, Admiral Kimmel had the same phone on his desk, Marshall could have picked up the phone, talked to Admiral Kimmel immediately and given him this warning, two hours would have allowed them to move the Pacific fleet out of the harbor. Instead, General Marshall said he decided to send a commercial telegram.

24:07He arrived two hours after the attack had already started. Now, look at FDR's actions after the attack. He immediately, almost immediately, December 15, 1941, appointed a committee to hold secret hearings in Hawaii to determine how this awful event could have occurred. He appointed Supreme Court Judge O.N.J. Roberts as chairman. Roberts had made a speech at Madison Square Garden on August 19, 1941, advocating America's entry into the war as a means of achieving world government. So this is the chairman of the commission. The commission investigated, held these secret hearings, but would not allow General Short or Admiral Kimmel to produce any evidence, did not allow them to confront their witnesses. The commission concluded unanimously that these two military commanders was the sole reason that we suffered this terrible surprise attack and both were forced to resign their commissions in disgrace. It was not until after the war and the death of FDR that the Joint Committee of Congress investigated in 1945. In 1946, all the information

25:22I have related to you is contained in the sworn testimony of those hearings. I'm going I'm going to hand out a sheet of my sources here for the speech, put them on the table out there, and I would encourage you to get these books yourselves and read them. The findings of the congressional investigation basically went across long political lines. Democrats absolved, Roosevelt blamed, Republicans stated that Roosevelt and Marshall were guilty of Gross Misconduct and Caused the Surprise Attack. The evidence is so overwhelming that FDR was at fault for the surprise attack on Pearl Harbor, quote, surprise attack on Pearl Harbor, that many of his defenders now have changed their tactics and no longer deny that he tricked America into the war.

26:17A very good example is the following quote from Professor Thomas Bailey, quote, Franklin John Roosevelt repeatedly deceived the American people during the period before Pearl Harbor. If he was going to induce the people to move at all, he would have to trick them into acting for their best interest, or what he conceived to be their best interest. He was like the physician who must tell the patient lies for the patient's own good. The country was overwhelmingly non-interventionist to the very day of Pearl Harbor, and an overt Another attempt to lead the people into war would have resulted in certain failure and almost certain ousting in 1940 and a consequent defeat for his ultimate aims.

27:08One final word about the good war against tyranny, World War II. In addition to Great Britain and our other ally was Soviet Russia. Joseph Stalin was already, by the end of 1938, the greatest tyrant and murderer in all of human history. I recommend to you two other books by Robert Conquest entitled The Harvest of Sorrow and The Great Terror. These two books cover two separate periods of time in Russia. The first was the period of 1929 from 1936 to 1934 when he intentionally killed 11 million of his own people and in the second is from 1936 to 1938 when the so-called show trials occurred. At that time he murdered 3,000 more Russian people, 3 million in the first period, 3 million in the second period.

28:07Just prior to World War II, he murdered 40,000 Soviet officers and 50 out of 57 of his commanders to purge them for being non-loyal. You'll recall that Hitler did not carry out such a purge of his own military and some of the regular army generals during the war tried to assassinate Hitler. Instead of allowing Hitler and Stalin, the two great tyrants who were at war with each The Greatest Tire and Murder in Human History

29:07urged Poland not to negotiate with Hitler, and Hitler stated he was trying to undo what had been done in the Treaty of Versailles, and that is take back German territory. England and America told Poland, stand back, we'll back you up. FDR and Churchill, also in the peace conferences at Tehran and Yalta, began to turn over, they turned over Poland to the They turned over most of Eastern Europe to the Communists. They turned over China to the Communists. So that the end result of World War II was the destruction of Nazism, but the dramatic enhancement of Communism throughout the world. In summary, World War II, in retrospect, was an attempt to save the British Empire from economic competition and an attempt to make the world safe for Communism.

30:00and Humanism. The key in both of these purposes was to destroy Germany. Great Britain's long-term policy of balance of power tried to prevent any strong power from arising on the continent. Once the German unification occurred after 1870, it was the strong power in Europe. Yet Hitler was, if you'll read Mein Kampf, you'll see that in his plan, he was totally against communism, as strong as any communist there was. And he states in his blueprint there, that the two main stabilizing forces in the world were the British Empire and the Catholic Church, and that both of those institutions must be maintained at all costs.

30:48He even demonstrated his ability, his intent, to save the British Empire when they completely had the German army captured at Dunkirk. And Hitler issued orders that the British army was not to be destroyed and his generals had to ask for clarification on three separate occasions, we have them surrounded, we can destroy them all. And he said, do not let them be evacuated. Germany under Hitler was also the principal anti-communist force in the world, but also Italy and Japan were strong anti-communist countries. In fact, Mussolini invented fascism as a method to fight communism. Great Britain won its war and it lost its empire because Because of adopting socialist programs and massive debts, FDR helped communism grow throughout the world, but especially in Soviet Russia, China, and Eastern Europe. The reaction to all of this in America after World War II was to realize that the great threat of communism had been created by Roosevelt. Truman then reacted to this with his containment policy and created the CIA and began America on its road to be world policemen to try to stop

32:14communism. William F. Buckley took over the conservative movement and like the charge of the light brigade, he led the conservative movement in the valley of death of big government in order to fight communism. Buckley lost sight of what the key struggle is and that is liberty versus power. Buckley did great damage to the cause of liberty. He took in all types of anti-communists, some Trotskyites, anybody that was anti-communist. But these people were not lovers of liberty. He brought in people like Whitaker Chambers who was no friend of liberty but had turned against communism. At the same time he turned out and refused to publish great champions of liberty like John T. Flynn. So it was a great debacle for Buckley to have taken over and created the new conservative Movement, possibly with funds from the CIA. Now, let's look at the American Imperium at home. It worked today in America. In my speech last year, I mentioned to you the correspondence between Lord Acton and Robert E. Lee

33:19after the American Civil War. Lee was asked to describe what he thought the significance of that war was, and he stated this, the consolidation of the The problem with building a huge military and stationing 1.5 million Americans in over 100 in Europe and its countries abroad also creates a massive government force at home which can prove to be despotic and has so proven.

34:05Alright, let's fast forward now to the present time and talk about the American Imperium at work at Ruby Ridge and Waco. Randy Weaver at Waco was no Unabomber. He had been charged by the ATF with possession of some illegal guns. He lived with his wife and family in the mountains. On August 21, 1992, three federal agents ambushed Weaver's 14-year-old son, Sammy, and a friend named Kevin Harris. One government agent started the whole affair by shooting the boy's dog and killing him. When the boy fired back, a firefight ensued and one of the federal agents was killed. The boy, Sammy Weaver, then turned and ran from the scene, and while running, another government agent shot him in the back and killed him.

34:54The next day the FBI was called in with their expert snipers and they were given this order for their rules of engagement, quote, Any armed adult male observed in the vicinity of the Weaver cabin could and should be killed. Within an hour of the snipers taking positions, every adult in the cabin was either dead or severely wounded, though they had offered no resistance whatsoever. FBI sniper Lauren Larigi shot Randy Weaver in the back as he stood out the shot and then fired the shot that killed Ricky Weaver's wife while she was simply standing in the door holding their 10-month-old baby. The Justice Department and the FBI then launched a massive cover-up and even destroyed critical documents which were detrimental to the government.

35:43Returning to Waco, seven months after Ruby Ridge, the ATF agent which had gotten a black eye at Ruby Ridge realized that they had a scheduled hearing before Congress on March 10, 1993. The command decision was apparently made to have a sensational successful event prior to that budget hearing in order to increase their budget for the next year. And this, to me, is the key fact which caused the debacle at Waco. Present law prohibits the use of army helicopters and tanks against American citizens, except in the case of a drug raid. Therefore, the search warrants were illegally and improperly made under oath that this was a drug raid, and in fact, all that they found or even knew to be there was some illegal The sheriff had visited this compound at Waco on many, many occasions and stated later that if they needed a search warrant that he could easily have gone in and made a complete investigation.

36:59All of these ATF troops were trained at Fort Hood, Texas, which would have been illegal except for the fact that they said that this was a drug raid. And they used army helicopters, army machine guns and army tanks against American citizens. The ATF employed a public relations expert to deal with the press so as to get the best coverage for the event. It is because of this press agent's contact with the press prior to the event that apparently worried The story leaked out that this raid was to occur and the element of surprise was lost. As the trucks pulled up with their armed federal agents and helicopters flew over firing down into the compound, the people inside fired back and several government agents were wounded and killed.

37:44A 51-day siege then took place and the FBI moved in and took control. During this 51-day period, some of the women and children were allowed to leave the compound, But the people in the compound saw that as soon as they left, they were slapped into chains and arrested. Finally, Janet Reno ordered the attack on April 19, 1993, resulting in the death of 76 men, women and children inside the compound. Truly fantastic, independently made movie entitled Waco, The Rules of Engagement has now been produced and is available from the Mises Institute. It presents the actual pictures of the events. presents the actual pictures of the congressional hearings and the testimony before the Joint Committee. It's presented in a very balanced way, but the conclusion is obvious, that the FBI agents lied under oath. The most telling thing about the movie to me was you see the FBI agents testifying. They used any machine guns. They did not fire in the compound. But they have this government film made by government airplanes at high altitudes. It shows down

38:55I went on to the compound how heat is produced and the purpose of this was to show that the government tanks did not start the fire. But what it shows is as the tanks move in you can see the machine gun fire coming from behind the tank into the compound. And this was done in the back part away from the press so they could not see. And it was known to the government that all the women and children had gathered in this one particular area that was most And that's where the tanks and the machine guns went in to kill them. And as Lou mentioned last night, poison gas was put in there. And you see the pictures in some of the books that I have recommended here of a small girl who is contorted backwards. And that's when you put somebody in the gas chamber in California, the poison gas causes contortions.

39:42And it shows that this poison gas contorted this young child into a very distorted position. To me, Waco is worse than Tiananmen Square in China. At least those brave Chinese students voluntarily placed themselves in harm's way to protest against tyranny, and they were freedom fighters willing to die for the cause of liberty. At Waco, we simply have peaceful

40:42Now, let's take a brief look at the FBI. Quote, what's wrong at the FBI? The article begins by pointing out that the FBI was the idea of a man named Charles Joseph Bonaparte, a descendant of the French Emperor. As you might imagine, the FBI was created in the big government push of the progressive era in 1908. Bonaparte was the attorney general for 10 years. by Teddy Roosevelt. The article goes on to point out that initially there were strong suspicions and objections to creating this central government police organization, and it was predicted then it would be as oppressive as the czar's police force.

41:28The author of this particular article in an establishment magazine such as Time stated, quote, and it did precisely that, end quote. The article continues with specifics of the horrible incidents at Waco, Ruby Ridge, Fowlgate, Richard Jewell, and the crime lab. I cut out this in USA Today this morning is the article about FBI to pay 1.6 million on crime lab whistleblower. This agent inside the FBI pointed out that their lab analysis was slanted so as to favor the prosecutors. And of course he was fired by the FBI and he's now collected 1.6 million and he has now formed a foundation to investigate all of the cases in which the FBI crime information has been used to see if an injustice has been committed.

42:26Part of the problem with correcting the FBI is that no politician is willing to attack them directly or to cut its budget since the public has indicated their great concern about crime. No one wants to mention that crime is a problem in government. The article points out that under Clinton, some agencies have been reduced, but the FBI's budget has jumped 25% to $2.9 billion. Congress has paid for 3,600 new employees and new computers. Law and order Republicans as well as leftist Democrats have joined in support of the FBI. The agency has gone international now, even with offices in Moscow. The FBI may spin completely out of control like the CIA and it has become an integral part of the American imperial.

43:16Crime inside government is far more dangerous to individual freedom than crime outside of government because it is done under the appearance of legitimacy and there's a full force of government power and propaganda behind it. In the short time I have left, I want to mention one other government agency. It is one most likely for those of us in this room to come in contact with and to be oppressive to us. It is the Internal Revenue Service, an agency created by the federal government during the Civil War. As Lord Acton is famous for saying, power tends to corrupt and absolute power corrupts absolutely.

44:02I want to recommend to you an excellent new book entitled Unbridled Power by Shelley Davis, who was an insider of the IRS. She was actually working for the Defense Department and was hired by the IRS to become their first official historian. She did a job very well. She studied documents, she interviewed witnesses, she attended congressional hearings, and exposed the whole corrupt organization. I'll mention one example of the things that she found. And this was where there were two competitors for a major clothing contract in New York. One company contacted the head of the criminal division of the IRS named Ronald Serino, and offered him a bribe in the form of a lucrative job with their company and other benefits if he would simply launch a criminal investigation of their competitor so as to keep them from getting the contract.

45:02He launched the investigation, they lost the contract, the investigation went on for three and a half years and turned up absolutely nothing. In the meantime, that competitor was almost completely ruined. But you'll be relieved to know that when the IRS found out about this total corruption, They took immediate and direct and forceful action. They fired Shelly Davis and they banned her from ever coming inside the IRS office again. This is the American Imperial in its finest hour. This fall, Congressman Ron Paul reported with great lament that the budget of the ATF increased by 14 percent and the IRS by 8 percent. The Republican-dominated Congress is not doing what it should fight the American Imperial.

45:50Let me conclude by changing gears slightly and talking to you about what I think a problem has been for the advocates of liberty in the past and what we should do in the future. The American Imperial has become aggressive abroad and despotic at home. The task ahead is to begin dismantling the American Imperial, which must occur before we can rebuild the and the Constitutional Republic created by our founding fathers. Two of the biggest mistakes made by the advocates of freedom in the 20th century have been the reliance on politicians and the ballot box, coupled with a failure to recognize the need for and the value of intellectuals to win the battle for public opinion. Frederick Hayek wrote a brilliant essay in 1949 in Chicago Law Review entitled, quote, Intellectuals and Socialism. He concluded that the vast majority of intellectuals have favored socialism and collectivism throughout the 20th century. He defined intellectuals to include those who shaped public opinion, such as professors and journalists. He points

46:55out that socialism was not a mass movement, but was created by intellectuals. Murray Rothbard wrote an equally great essay entitled, The Anatomy of the State, published in Rampart's Journal in 1965, and in this he pointed out that the alliance between the state and the intellectual is an ancient alliance, going back to the time of Joinda of Church and State. He states that the job of the intellectual has been to convince the masses to support the state. He states in particular this, quote, Promoting this ideology of support of the state among the people is the vital task of the intellectuals. For the masses of men do not create their own ideas or, indeed, think through their ideas independently.

47:43They follow passively the ideas adopted and disseminated by the body of intellectuals. The intellectuals are therefore the, quote, opinion molders in society. and since it is precisely a molding of opinion that the state almost desperately needs, the basis for the age-old alliance between state and intellectuals becomes clear. It is evident that the state needs the intellectuals. It is not so evident why intellectuals need the state. Put simply, we may state that the intellectuals' livelihood in the free market is never too secure, For the intellectual must depend on the values and choices of the masses of fellow men, and it is precisely the characteristic of the masses that they are genuinely uninterested in intellectual matters.

48:31The state, on the other hand, is willing to offer to intellectuals a secure and permanent berth in the state apparatus, and thus a secure income and a canopy of prestige. For the intellectuals will be handsomely rewarded for the important function they perform for the state rulers of which group they now become a part." In this description of these syncophatic intellectuals, as I call them, I think of John Maynard Keynes and John Kenneth Galbraith as prime examples. When the believers in individual freedom saw this vast support of intellectuals for big government and collectivism in the 20th century, They falsely and erroneously concluded that all intellectuals were against them and that they could win the battle for public opinion through political leaders at the ballot box.

49:19They didn't believe intellectual support was necessary or available. The state or central government has a vast array of resources for propaganda, distortion, hiding the truth, and intellectuals who support freedom can serve as the essential method by which one can cut through the myths and falsity and expose the disastrous ideas that have caused the American Imperium. Returning back to Hayek's essay, he makes a vital point which states one of the primary purposes of the Mises Institute, quote, We need intellectual leaders who are prepared to resist the blandishments of power and influence and who are willing to work for an ideal, however However small may be the prospects of its early realization, there must be men who are willing to stick to principles and to fight for their full realization, however remote.

50:13The practical consequences they must leave to politicians. Unless we can make the philosophic foundations of a free society once more a living intellectual issue, and its implementation a task which challenges the ingenuity and the imagination of Our Lifeless Minds, The Prospects of Freedom Are Indeed Dark." However, Hayek concludes this article written in 1949 on a hopeful note because he states at that time he is beginning to see some intellectual support for freedom. He and Ludwig von Mises are two of the greatest examples of the type of intellectual leaders that we need today, and their ideas are beginning to gain some acceptance in Western civilization. Personally, I am more optimistic at this time about the prospects of the success of freedom than in any time in my lifetime and I think any time in the 20th century.

51:07The fall of the Soviet empire and the dramatic demonstration of the failure of central planning of the economy under socialism have impressed the entire world. But American universities still remain the most prominent stronghold of intellectuals who support collectivism and socialism. And this is a major problem for developing intellectuals who will support freedom. Another exciting and encouraging note for the future is the existence and the work of the Mises Institute which is dedicated to developing those types of individuals Hayek mentioned, who will support the ideas of a free market economy and a limited constitutional government. We will need those intellectuals to help dismantle the American Imperium in order to rebuild the American Republic.

51:55And I hope that you will all continue to support the Mises Institute in these efforts. Thank you.